Bridging (Short Term) Finance
Short term finance otherwise termed bridging is used for a multitude of purposes some of which are:
- Releasing equity from an unencumbered property (one with no loan outstanding against it) or one with significant equity to buy another investment property.
- Auction Finance – where speed is essential to ensure that special purchase can be made without risking a breach of contract and worst still a loss of deposit.
- Buying a property which is not in a good enough condition to satisfy a standard buy to let lender/product.
- Buying a property with a view to achieving a change of use (e.g. commercial to residential/residential to flats) or planning change.
- A developer wishing to raise money from completed yet unsold property to start the next development.
CFS can advise on those instances where the property is not to be occupied by the client as their personal residence – in instances where a client plans to live in a residential property we would be unable to assist and would recommend the use of a regulated mortgage broker.
Clients need to always be aware that when taking out a loan the security provided is always at risk should the client fail to adhere to the agreement with the lender – no loan should be taken out without considering carefully all the aspects involved which is something only the client can truly do.